FTSE up slightly

Housebuilders and retail stocks were higher today amid hopes that British government measures to stimulate the property market will revive consumer demand.

There was also a boost for transport shares after the price of oil dipped below US$110 a barrel for the first time since May.

The developments lifted the FTSE 100 Index by 17.1 points to 5619.9 by mid-morning, although lower commodity prices caused a drag on mining and energy stocks, with Rio Tinto down 186p at 4824p and BP off 10p at 511p.

Holidays and flights operator Thomas Cook was the biggest top flight riser, up more than 6% or 15p to 244.75p after the fall in the price of oil.

British Airways also benefited with a gain of 16p to 277.75p, while cruise ship firm Carnival added 83p to 1974p and Thomson owner TUI Travel cheered 11.75p to 228p. Easyjet rose 29.5p to 372p in the FTSE 250 Index.

The impact of the Government’s one-year holiday on stamp duty for properties below £175,000 (€215,076) offered a glimmer of hope for consumer-focused sectors.

Shares in retailer Next jumped 66p to 1139p, a gain of 6%, while B&Q owner Kingfisher rose 6.1p to 141.2p and Marks & Spencer lifted 8.75p to 269.25p.

Among housebuilders in the FTSE 250 Index, Taylor Wimpey lifted almost 10% or 5.5p to 61.5p, Persimmon rose 35.5p to 420.75p and Bovis Homes added 36.75p to 487.75p.

There was also a boost for pub operators after Greene King said it expected to meet full-year forecasts, despite testing trading conditions. Shares in the Suffolk-based firm rose 33p to 565.5p, a gain of 6%, while Mitchells & Butlers added 21.5p to 302.5p and Marston’s rose 15p to 215.5p.

Tool hire firm Ashtead added 7p to 84.25p after it impressed investors with a 26% rise in first quarter profits.